Nirmal Bang: Retail Auto Sales Continue To Improve Sequentially; Channel Filling Drives Wholesales

Nirmal Bang Report

Automobile sales in September 2020 are likely to witness further improvement over August on the back of normalization of supply chain, strong sentiments from rural and semi urban markets and rise in preference for personal mobility.

Higher demand from festive-centric markets at the start of the month helped offset lower retail sales in the northern and western markets on account of the Shraadh period and the 30-day Adhik Maas, both of which are considered as inauspicious periods in these markets.

Dispatches from original equipment manufacturers (OEMs) are likely to improve sequentially on account of further ramp-up in plant utilization levels following the gradual recovery in supply chain and labour availability.

For majority of OEMs, dispatches are expected to be higher on a YoY basis on channel filling and a low base.

Our interactions with dealers suggest that retail sales have improved sequentially on account of relatively higher demand from festive-centric markets like Kerala and Maharashtra.

Wholesales are expected to be higher than retail sales as OEMs fill the channel to build up inventory (currently lower than normal level) for the upcoming festivals.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.